Discuss what is the companys target debt-equity

Assignment Help Accounting Basics
Reference no: EM131808625

Fama's Llamas has a weighted average cost of capital of 9.5 percent. The company's cost of equity is 15.5 percent, and its pre-tax cost of debt is 8.5 percent. The tax rate is 34 percent. What is the company's target debt-equity ratio?

Reference no: EM131808625

Questions Cloud

Compute the amount of goodwill recognized : Compute the amount of goodwill recognized, if any, on 5/31/15. Determine the goodwill impairment loss, if any, to be recorded on 12/31/15
Which theories might be effective instead : In which situations might it not be effective? Which theories might be effective instead?
Find the estimated total error based on sample : You are supervising an audit to decide whether or not any errors in the recording of account transactions are "material errors."
What is current total profit-loss and per unit profit-loss : What is the current total profit/loss and per unit profit/loss? What is the special order total profit/loss and per unit profit/loss?
Discuss what is the companys target debt-equity : The company's cost of equity is 15.5 percent, and its pre-tax cost of debt is 8.5 percent. The tax rate is 34 percent. What is the company's target debt-equity
Cross-cultural and international issues : Cross-Cultural and International Issues. Imagine yourself as a manager who has been working for the XYZ Corporation in Boston for the last three years.
Find for the equilibrium price and quantity : If a market is characterized by Qd = 100 - 2P and Qs = 20 + 3P . Plot the supply and demand lines on a graph and solve the equations to find for the equilibrium
Discuss about the self-management skills and traits : Self-management skills/traits are often considered as professional, leadership, and personal traits; and some are highly desirable to business organizations.
Find the equilibrium price and quantity pairs : a) Find the equilibrium price and quantity pairs in the original setting. b) What happens if the consumer reservation prices increase by $1.00?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Federal individual income tax return forms

Please complete the required federal individual income tax return forms for the following taxpayer. Unless instructed otherwise, the information provided is for the taxpayer's 2012 tax year. Please complete his 2012 tax return. Ignore the require..

  Record the income reported by d corporation

Record the income reported by D Corporation of $35,000 and by F Corporation of $367,000 in 2014. Record the fair value effects at 2015 year-end.

  Hacker aggregates mines and distributes various types of

hacker aggregates mines and distributes various types of rocks. most of the companys rock is sold to contractors who

  One-half of retirement savings

You can tax shelter only one-half of your retirement savings. You want to invest one-half of your savings in bonds and one-half in stocks. How much of the bonds and how much of the stocks should you allocate to the tax sheltered investment?

  What is the market implicit target price at the end

Tarek Corp reported a book: value for its 563.6 million common shares of $5.650 million on December 31, 2016. What is the market's implicit target price

  Current taxable on gifts

Total 2008 gift of life insurance policy is 72,000. annual exclusions are 24,000 (two donees at 12,00). Current taxable gifts equal 48,000.

  Determine cost of goods sold

Determine cost of goods sold during the period under a periodic inventory system using (a) the FIFO method, (b) the LIFO method

  Calculate amount of book value per share for common stock

Calculate the amount of book value per share for common stock and summarize briefly what that figure means in relation to the current market value of the stock

  Prepare journal entry to record issuance of bond

Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2009

  Ben and john formed bcd inc a corporation in 2011 ben

ben and john formed bcd inc. a corporation in 2011. ben received 80 of the voting common stock the only class of stock

  What is talley pension expense to be recorded for year 8

what is talley's pension expense to be recorded for year 8? (hint the expected return on plan assets equals beginning of year plan assets times the settlement rate)

  Role of the primary drive of hunger

Describe in 500 to 700 words the role of the primary drive of hunger and its effect on eating disorders. Discuss the effects of gender and cultural differences among eating disorders on emotions.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd